WESTPAC_SPE602-18-R-0713_Q_&_A.pdf

SPE602‐18‐R‐0713 WESTPAC SOLICITATION QUESTIONS & ANSWERS 03 MAY 2018

QUESTION 1: Our quality team worries about MSEP. We may not be able to satisfy the MSEP when CI is added. MSEP result needed to be more than 70 min when Jet A‐1 includes SDA (our Jet A‐1 includes

SDA).

a. Is the concentration of CI necessarily needed to be within the concentration range of what defined in

Quality Product Database when CI is in line item requirement?

b. Can MSEP requirement be eased or waivered when Jet A‐1 includes SDA and CI, and FSII at the same time?

ANSWER 1: a. Yes, when CI is required in the line‐item, the concentration of CI is determined by

QPD; usually between Minimum Effective Concentration and Maximum Allowable

Concentration.

b. Yes, the offeror can submit a waiver request for MSEP, however the odds of the MSEP requirement being eased/waived would not be likely. **Please note any waivers/exceptions must be submitted with the offer. There is no guarantee of approval.

QUESTION 2: The location Hachinohe, Japan (Where all SDA, CI, FSII) are "YES" in the line item of last year's solicitation, so we want to assume the location's line item includes all additives required in basis.

To this location, can we get waiver to not include CI? Your original answer was "Even if CI is "YES" in line item, CI is not necessarily requirement as long as Jet A‐1 satisfies "lubricity" defined in Def Stan 91‐091, so Jet A‐1 without CI to Hachinohe is acceptable if Lubricity is OK." Is it correct?

ANSWER 2: Unfortunately this not correct. Sorry for the initial confusion. If CI is required by the line item then the fuel must have CI added. There will be no waiver considered for CI even if the lubricity is on spec. The customer will not accept the fuel without CI.

QUESTIONS 3: Definition of "Lubricity”, as referred in the email I sent, Def Standard 91‐091 requires lubricity only when the Jet A‐1 is in specific condition (see "Note 19" attached in my email below). That is to say, we do not need to care about lubricity when the Jet A‐1 is out of the specific condition. Is it same for Jet A‐1 to Hachinohe II, where CI is required in Line Item?

ANSWER 3: Lubricity testing guidance does follow the requirements laid out in DEFSTAN 91‐091 note 19. The fuel only has to be tested for lubricity when the criteria outlined in note 19 are met. However, if CI is required by the line item it must be added. I understand this may be confusing but there could be a situation where CI must be added but the lubricity test isn’t required.

QUESTION 4: Use of CI ‐ We would like to confirm that we do not necessarily need to use CI when the

Jet A‐1 (without CI) satisfies DEF STAN91‐091.

ANSWER 4: If the line item requires CI, the Jet A1 must have CI. This is regardless of whether or not the lubricity requirements are met without CI. DLA Energy does not have the capability to inject CI at these locations where CI is required by the line item. Additionally, the customer will not accept the fuel without CI. When CI is required, following section of QAP C16.09 for CI applies:

“C16.09 (b) (2)

(2)CORROSION INHIBITOR/LUBRICITY IMPROVER (CI/LI).When CI/LI is required by contract line item the additive shall conform to the latest revision of MIL‐PRF‐25017H with amendment 1 dated August 4, 2011, and be listed in Qualified Products List (QPL)‐25017. In order to obtain dosage data for QPL‐25017 additives, log into ASSIST Online, access the Qualified Products

Database (QPD), do a search for QPL number 25017, and click the MIL‐PRF‐25017 Category 1 link. The dosage information is located in the "source notes" for each qualified additive as minimum effective and maximum allowable concentrations in grams per cubic meter (g/m3).

Secondly, regarding the issue below with DEF STAN 91‐091 lubricity testing requirements:

Lubricity testing guidance does follow the requirements laid out in DEFSTAN 91‐091 note 19.

The fuel only has to be tested for lubricity when the criteria outlined in note 19 are met. NOTE:

This is a separate issue from above. If CI is required by the line item it must be added.”

QUESTION 5: What are the variables used for the BEM modeling process? I am tracking product cost, transportation rate, and additive cost (if required); however, in the lowest laid down cost summary there appears to be a discount variable possible.

ANSWER 5: As mentioned, product price, estimated transportation, and additive prices are the primary inputs. The inputs you’ve cited that appear as discounts are probably adjustment factors that apply to the chosen Platts heading for that offer line. See B19.34 for the listing of

Platts headings and applicable adjustment factors. These factors may be positive or negative and are calculated to counter above‐average fluctuations between any available Platts heading versus the primary Platts heading on the Base Reference Date. The primary Platts heading is listed first for each product and has a zero adjustment factor.

Other variables that may come into play are usually captured in the estimated transportation rate. For example, if a full vessel is 235 MB and you restrict your offer to a maximum parcel size of 200 MB, the total calculated shipping cost is divided over fewer gallons. See the answer about sailing time for additional factors.

QUESTION 6: Where can we source this information? Product we have, transportation I believe I have but want to better understand, discount is an unknown to me.

ANSWER 6: The daily vessel rates are provided in the solicitation. These usually appear in the

Additional Information for the SF1449. If the rates weren’t available at the time the RFP is released, they may be provided later via an amendment. The daily rate is divided by 24 to get an hourly rate. The hourly rate is multiplied by the sailing time. There are 2 vessel rates: 1 for the large tankers (used to be labeled T5) and the other for the shallow draft tankers (T1).

QUESTION 7: What tool do you use for calculating sailing time for tankers and what are the assumptions used for the modeling? (Related to the above)

ANSWER 7: We determine the nautical mileage using a commercial application that allows us to input the coordinates (longitude and latitude) of the shipping point and each destination on the schedule. The mileage is used to estimate how many vessel hours are required for a round trip voyage, including time for loading and offloading, and for any related extra time such as passing through a canal. A restriction for daylight berthing and loading each add 12 hours to the total estimated sailing time – effectively an evaluation penalty in the form of a slightly higher transportation rate.

QUESTION 8: What will end the reverse auction? Is it time driven or event driven?

ANSWER 8: The reverse auction, if there is one (and there may be multiple rounds) is timed.

QUESTION 9: When can we expect DLA Energy to visit our facilities to pass the technically acceptable phase of the contract process?

ANSWER 9: Although a survey may reveal deficiencies that are technical, the process actually determines responsibility rather than technical acceptability. These preaward surveys are performed on the source refinery (and the shipping point if these are different) as soon as possible after we receive sufficient information to allow us to begin. We need a supply commitment between the facility and the offeror that grants DLA Energy the justification for review. We also need a POC at the facility, however, you may request to be the liaison between

DLA Energy and the facility for purposes of scheduling the survey. If the facility is one we have successful experience with in the last 2 years for the offered product, we may not need a review or a remote desk audit may be sufficient. See contract text L704 for details (L2.07.100 in the last

RFP).

The responsibility determination may also include a financial survey. This involves an auditor requesting information over the phone or on a form that can be emailed.

QUESTION 10: Do you publish multiple reference prices simply to avoid debate on what the published prices were on that day or is there another reason for having multiple regions list instead of just the date?

ANSWER 10: The various Platts headings for basing price adjustments are provided so offerors can choose a heading that most accurately reflects the market where the product is sourced (IE:

Singapore, Arab Gulf, or Med Basis Italy). DLA Energy will entertain other choices on a case‐by‐ case exception basis. But because a new formula must be built in EBS for each heading used, we prefer not to expand too much here. Last time, we also offered 5‐day averages vice the usual

10‐day averages, though we may not do that again.

QUESTION 11: How can we make DLA Energy’s job easier?

ANSWER 11: Providing all requested information with your initial offer is the best way forward.

That serves both parties because we have the maximum time to identify deficiencies and negotiate to a final offer that can be evaluated.

QUESTION 12: Item T0001 (JA1 for Okinawa): The total required quantity for Okinawa is 63,400,000USG.

Out of 63,400,000USG, 63,000,000USG is destined to Okinawa with FSII and CI only and the rest is for

MCG gas station with FSII, CI and SDA requirement. Can we make an offer for the total quantity of

63,400,000USG with FSII and CI only? If so, are we to provide SDA separately for a relevant cargo destined to MCG gas station for blending at the location?

ANSWER 12: Per the solicitation requirement, you need to submit an exception for the MCG gas station requirement with your submission.

A JA1 origin tanker offer with FSII and CI will be input at LINE Item T0001 DFSP Okinawa.

Government costs for SDA and truck will be added for evaluation purposes to MCB Gas station.

If an offeror intends to deviate from additive requirements outlined in the solicitation then the offeror must submit an exception with their offer. Please note that there is no guarantee exceptions will be approved.

QUESTION 13: Item T0003 (JA1 for Ulsan): Delivery modes/FOB for the destination are TK/O and

PL/Destination. It is my understanding that TK/Origin is acceptable as well with FSII and CI only. Please confirm it.

ANSWER 13: Yes, FSII and CI only for that requirement. Yes, per the solicitation only FSII and CI are required for Line Item T0003 DFSP Ulsan FOB Origin Tanker or FOB Destination Pipeline.

Please be sure to reference the solicitation for any additional terms and conditions.

QUESTION 14: Item T0004 (JA1 for Guam): There is no requirement for all the three additives (FSII, SDA, CI) for DFSP Guam 2 while all the three additives are required for Yigo Anderson AFB and delivery mode/FOB restriction for there are Pipe and Origin. I would like to clarify that Pipe/Origin for Yigo

Anderson is meant from DFSP Guam 2 to Yigo Anderson and awardee does not have to provide the three additives along with each cargo for blending at the location.

ANSWER 14: The additives are a requirement for Yigo Anderson. Your offer will be evaluated on the product and method in which you support. If additives are not offered, they will not be evaluated as such.

A neat JA1 origin tanker offer will be input at LINE Item T0004 DFSP Guam. Government costs for additives and pipeline will be added for evaluation purposes to Yigo Anderson AFB in accordance with FAR 52.212‐2.

QUESTION 15: Item T0005 (JA1 for W Pyungtaek): Is this a new location added in from now on?

ANSWER 15: Yes this requirement is new. At this time I do have an estimate for the end of this requirement. Yes Line Item T0005 West Pyeongtaek is a new location; however, we cannot confirm at this time what locations will be required on future solicitations.